August 23, 2002—The Business and Institutional Furniture Manufacturer’s Association (BIFMA) recently released the 3rd quarter, 2002 office furniture industry forecast prepared by the economic consulting organization, DRI-WEFA. The latest forecast downgrades the expectations for calendar year 2002, calling for an 18% decline in shipments to a level of just under $9 billion. Modest improvement is expected early next year with a 7% increase in shipments, to a level of $9.6 billion in 2003.
A cautious corporate investment outlook and weak office construction will continue to restrain order and shipment volumes in the near-term, says BIFMA. Economic consultants DRI-WEFA believe that corporate profits have bottomed out and expect them to rise steadily for the remainder of 2002 and through 2003.
Employment growth should accelerate toward the end of the year, however, will remain below the 3% growth rate of the late 90’s. New office construction is expected to decline for several more quarters before any signs of recovery materialize. This downturn in new construction will provide the primary drag on furniture demand through mid-2003.
For more information, contact BIFMA.
